The Role of Green Finance and Research and Development in Economic Resilience

Abstract

This study aims to conduct an in-depth analysis of the impact of green finance and research and development (R&D) activities on the level of economic resilience in 24 countries. Economic resilience is defined as a nation’s capacity to withstand, adapt to, and recover from various economic pressures or shocks, whether internal or external in nature. The independent variables employed include the Green Growth Index as an indicator of green finance, the number of Research and Development R&D expenditure, Adjusted Net Savings (ANS), and Gross Domestic Product (GDP) per capita. The study utilizes secondary data from 2021 obtained from international institutions such as the World Bank and applies a binary logistic regression approach for analysis. The results reveal that ANS, which accounts for environmental damage caused by carbon emissions, has a positive and statistically significant effect on economic resilience. Conversely, GDP demonstrates a significant negative effect. Meanwhile, the variables representing green finance and R&D do not exert a statistically significant influence in the final model. These findings underscore that environmental sustainability constitutes a key determinant in strengthening economic resilience, whereas traditional economic growth may not necessarily reflect long-term resilience unless accompanied by the principles of inclusivity, resource efficiency, and environmental sustainability.